21.31

ASSISTANCE UNITS WITH BOARDERS

AUs that take in boarders or that operate
commercial boarding houses are considered self-employed.Identifiable expenses are allowed as costs
of doing business, as in any self-employment.

Determining Income for AU

The income from boarders (self-employment income) includes all direct
payments to the household for room and meals, including contributions to the
household’s shelter expenses.Shelter
expenses paid directly by boarders to someone outside of the household are
not counted as income to the AU.

Cost of Doing Business

After determining the income received from the boarders, exclude that
portion of the boarder payment which is a cost of doing business.The cost of doing business is equal to one
of the following, provided that the amount allowed as the cost of doing
business does not exceed the payment the household received from the boarder
for lodging and meals:

·The cost of
the Thrifty Food Plan for a household size that is equal to the number of
boarders.

·The actual
documented cost of providing room and meals if applicant claims actual costs
exceeding the Thrifty Food Plan.If
actual costs are used, the only separate and identifiable costs of providing
room and board to the boarder are excluded.